UBS Group becomes first global bank to apply for majority control of Chinese securities venture

China’s top securities regulator has accepted and is reviewing an application by the UBS Group to increase its stake in its Chinese securities venture to 51 per cent, after the Swiss bank became the first global financial institution to apply for a controlling share in its local operations.

The China Securities Regulatory Commission announced on its website on Wednesday night that it was reviewing UBS Group’s application to increase its stake in UBS Securities Company, its Chinese joint venture.

“China is a key market for UBS. The further opening up of China’s financial sector represents great opportunities for our China businesses, including investment banking, wealth management and asset management. The Chinese government’s decision to allow foreign companies to take up to 51 per cent in securities joint ventures is another important step in the opening up of China’s markets,” UBS Group said in a written response to the South China Morning Post.

“We are pleased to confirm a key milestone in this process, with UBS Securities submitting an application to the CSRC to allow UBS AG to increase its stake in the joint venture to 51 per cent,” said the company.

UBS Group’s application comes just days after the CSRC revealed details over the weekend about the plan to allow majority control of onshore securities ventures by foreign companies. Currently, UBS Group is the second-largest shareholder of UBS Securities Company, with a more than 20 per cent stake and management control of the venture.

Beijing Guoxiang Asset Management, an asset management unit of the Beijing city government, owns 34.73 per cent.